Bangladesh and Japan team up to build energy infrastructure worth $500m

It is part of Bangladesh’s $18b infrastructure project that will add 2.4GW to its total generation capacity.

Bangladesh’s Summit Group has partnered with Japan’s JERA to develop energy infrastructure, including port facilities, in the Matabari Area in Coz’s Bazar, Bangladesh for over $500m, a report by Reuters revealed.

Under the memorandum of understanding (MOU), both companies will initiate the project, which is capable of handling 20 million tonnes of bulk cargo a year, Summit Corp said in a statement.

The project is expected to be operational within two years of the signing of a firm project agreement between the companies and the Bangladeshi government, Summit said.

This is a part of Bangladesh’s largest $18b (1.5t taka) infrastructure project, said a senior energy ministry official, who asked not to be named as he is not authorised to talk to the media.

Under the overall government project, the government will build a deep seaport at Matarbari, four units of a coal-fired power plant with a capacity to produce 2.4GW of electricity, and a liquefied natural gas (LNG)-fueled power plant, also with facilities at Matarbari.

In addition, eight coal-fired and LNG-based power plants with 8.32GW capacity will be set up at Moheskkhali, the official added.

Read the full report here.